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This is probably no surprise, but Robinhood has announced that BTC was the most traded cryptocurrency on its trading platform in 2020. In fact, BTC had an average daily market volume of more than $ 54 billion in March 2021, the company said in an amended report to the U.S. Securities and Exchange Commission on Monday.
Sale of shares
Form S-1 revealed that BTC on the trading platform had risen 575% from about $ 8 billion in February 2018 to $ 54 billion in March 2021, Robinhood said.
The company has approximately 17.7 million active users, with more than 50% of its customers being first-time investors and cumulatively managing $ 81 billion in assets, it said.
Robinhood is aiming for a market valuation of up to $ 35 billion through its primary public offering, according to the submission, which is 199% more than its last private market valuation of $ 11.7 billion in September 2020.
The company expects to sell 55 million shares at prices ranging from $ 38 to $ 42 per share.
High activity, lower income
The company said business activity was “particularly high” during the first two months of 2021 and during the last few weeks of the second quarter. It returned to a level more in line with the previous period and remained at a similar level at the beginning of the third quarter.
Robinhood also added that it expects revenues from 30 June to 30 September to be lower compared to the three months before the period, due to lower levels of business activity compared to its record levels, especially for cryptocurrencies such as Dogecoin.
A small beginning
The trading platform began as a US-based retail brokerage company, but has grown significantly over the years.
Founded in Vladimir Tenev and Baiju Bhatt in 2013, Robinhood pioneered free trading with a user-friendly application. The California startup became so popular that the entire stock market industry was pushed in 2019 to cancel business commissions.
The company allows users to trade several cryptocurrencies, including BTC, Ethereum and Dogecoin, in addition to shares listed on US stock exchanges and exchange traded funds, as well as related options and US certificates of deposit.
From February 21, 2018, the day before Robinhood launched cryptocurrency trading on its platform, until March 31, 2021, the total market capitalization of cryptocurrencies increased from approximately $ 450 billion to approximately $ 1.9 trillion, due to increased trading acceptance. with cryptocurrencies by retail and institutional investors, as well as the continuing growth of various non-investment cases of cryptocurrencies, the company said.
Conclusion
Although estimates of the future size of the cryptocurrency market are “very mixed”, the historical trend is strongly supportive. The report is no surprise. It is to be hoped that this will continue to be the case.
